Frank, I can't say that I have worked in this specific setting, but I have been close. I was a resident advisor right out of college at a "home for wayward boys", kids that weren't quite ready for the detention center, but were one step away. I had a brief stint as a job developer for prisoners about to get out. I then taught the 10 week pilot program for the Woodturning Center's community outreach program in downtown Philly. This took place at a deep inner city school surrounded by razor wire.
There are lots of things that can be done, or at least tried, with young men who have grown up without the benefit of a strong father committed to good values. Putting sharp tools into their hands is not one of them. These are kids who can change from calm and rational to murderous in the blink of an eye over some perceived slight. For many of them that attitude has been ingrained in them from the time they were born. It is the culture in which they were raised. If this guy persists in this plan and actually gets it approved, I would not step into a situation like that without one on one supervision, and complete separation between the inmates. This would be a perfect setting for someone intent on evening a score. In fact, I would not step into a situation like this at all. I think there are better ways to teach these boys something practical, constructive, and responsible, long before they get turning tools into their hands.
Oh yeah, one more story. I started to teach the three boys of a friend of ours to turn several years ago. They came from a "good" home, well disciplined, and knew me well. I told them in no uncertain terms that there was to be no fooling around while I was teaching the one on the lathe. In less than five minutes, the lesson came to a halt when I had to break up the two not on the lathe for sword fighting with my gouges.
I think it can be done, and I have done it, but there needs to be a demonstration of responsibility and trust to accomplish anything worth the time and effort.
Edit in: I don't know if you meant arena instead of area, but arena is certainly a good choice.
Bill